Public Inv starts IHH at RM2.98 fair value

Public Investment Research started world’s second largest healthcare
company IHH Healthcare Bhd with a fair value of RM2.98 (US$0.94)per
share, some 4.6 per cent higher than its IPO price of RM2.85.

“Although
we expect to see sustained trading interest in the stock in the short
term, there is limited upside for IHH’s fair value, with significant
downside risk should the company fail to deliver the expected results,”
Public Investment said in a note.

The research house said high
expectations of IHH’s future growth have been reflected in its offer
price, making it one of the most expensive healthcare stocks in the
world.

Public Investment said it was cautious on IHH’s plans
to synergise its operations across Malaysia and Singapore to Turkey due
to the massive size and complexity of the group.





Also, healthcare costs are very specific to these countries.

Reuters
reported yesterday that IHH’s global institutional offer, which makes
up 6 per cent of its US$2 billion initial share sale has been
oversubscribed nearly 60 times at the higher end of the bookbuilding
range between RM2.67 and RM2.85 per share. -- Reuters